PREMIUM FINANCE PROCEDURE FOR 
NEW YORK

Please read and follow our procedures:

♦    How to Complete the Finance Agreement
♦    What Money to Collect and What Draft to Write
♦    What to Send to Who

 1.  Complete Insurance Company Application (NYAIP or
     Direct Appointment).         

  2.  Complete APFC Premium Finance Agreement and
      Disclosure Statement.        

     A.  Insured's Name, Address, Drivers License Number, Social Security Number, Home telephone, Business telephone in upper left box. 
All information is required!

     B.  Agent's Name, Address, Telephone and three Digit Agent Code assigned by APFC to the Agent in the upper right box.

     C.  Fill-in Schedule of Policies of policies to be financed: 

     D.  Effective Date is the actual effective date of the policy or date assigned risk application is written.

     E.  Name of Insurance Company:  For an Assigned Risk Policy through NYAIP write NYAIP, for other companies, write name of insurance company.

     F.  Coverage:  Liab or Comp

     G.  Term:  number of months, i.e. 12

     H.  Premium Amount:  Gross Premium amount - without taxes or fees   

      I.  Taxes and Fees - Non-Financed: write amount of taxes and fees here.  We do not finance any taxes or fees.  You must collect and remit all taxes and fees in addition to our required down payment.

     J.  Check Appropriate Box at top of form - Personal, Commercial, Renewal, Additional Premium.

     K.  Account Number:  Fill-in our Account Number on Additional Premiums only.  New Accounts will be assigned an account number by APFC.

 3.  Look up Premium amount in APFC Rate Book to determine Federal Truth-In Lending numbers.  Transfer those numbers to the Premium Finance Agreement.  Look up the Gross Premium in the left column.  Then copy the numbers on that line to the finance agreement to the appropriate boxes under Federal Truth-In Lending Disclosure Statement.

  4.  Fill-in Federal Truth-In Lending Section: Total Premium (total of policy premium listed under Schedule of Policies), Down Payment (15% on Personal policies, 20% on Commercial policies), Amount Financed, Finance Charge, Total of Payments, Total Sale Price (Total of Payment + Down Payment), APR Rate, Number of Payments (9 payments), Amount of each payment,  Payment Due Date (30 days from the effective date of the policy).

 5.  Automatic Monthly Payment Option:  The insured can authorize the monthly payment to be automatically charged to his checking account or credit card.  If the insured wants this service, check the appropriate option. 

    For Checking Account - you must attach a Voided Check or Deposit Slip to the Original Finance Agreement which is mailed to APFC.

    For Credit Cards - check the credit card type, fill-in the Credit Card Number and Expiration Date.

 6.  Have Insured sign and date Premium Finance Agreement.
 
      View sample completed Premium Finance Agreement

 7.  Agent prints Agent's Name on lower left line of Premium Finance Agreement and signs Agent's Name on lower right line.

8.  Collect appropriate Down Payment from Insured.  Note:  The Assigned Risk Plan requires a Money Order or Agency Check as payment of the Insured’s Down Payment. 

 9.  Write out an APFC Funding Draft payable to the insurance
       company or (NYAIP).

     A.  Draft Amount: 10% of the policy premium.

     B.  Write name and address of insured in upper left box.

     C.  Write your APFC Agent Number and Agent Name on lower right line.
 
View sample Draft

10.  RENEWALS:  For Renewals only, write out an APFC Funding Draft payable to the insurance company for 10% of the policy premium.  Mail the Insured's Down Payment, APFC Funding Draft and APFC Finance Agreement to the insurance company.  Mail to APFC - the original signed Finance Agreement, Renewal Notice and yellow copy of Draft.

 11.  Send copy of Premium Finance Agreement marked Insurance Co. along with APFC Funding Draft (10%) and Insured's Down Payment (15%) attached to the Insurance Company Application to the insurance company (NYAIP).   Note:  The Assigned Risk Plan requires a Money Order or Agency Check as payment of the Insured’s Down Payment.  APFC will fund the balance due the insurance company upon receipt of the Declarations Page.

 12.  Send Original signed Premium Finance Agreement and yellow copy of Draft to APFC in Arizona.

 13.  Give Insured copy of Premium Finance Agreement marked  Insured's Copy.

 14.  Retain copy of Premium Finance Agreement and Draft for
        your records.

 15.  APFC upon receipt of the Premium Finance Agreement, will mail to the Insured a letter and Coupon Book advising the insured that the premium is being financed and where and when to send payments to APFC.

 16.  Upon receipt of the Declarations Page from the insurance Company, the Agent must fax the Declarations Page to APFC at 800-662-8854.  APFC will fund the balance due the insurance company upon receipt of the Declarations Page. 

Please review the Declarations Page to determine if there is an uprate to the quoted premium.  If there is an uprate the agent must contact the insured and arrange for payment and or financing of the additional premium amount.  See our Additional Premium Procedures for details.
 

Review all Declaration Pages or Premium Billing Notices from the insurance carrier.  If the premium is greater than the premium written on the original finance agreement, any greater amount is treated as an Additional Premium. 

In cases of Additional Premiums, follow our Additional Premium Procedures.  You must contact the Insured and get him or her to bring you the new down payment required on the uprate and have them sign an Additional Premium Finance Agreement.
 
View sample completed Premium Finance Agreement